theDocumentId => 748788 Average Cyber Attack Cleanup Tops $1M, Radware Finds

Dark Reading is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Operational Security

1/15/2019
08:15 AM
Scott Ferguson
Scott Ferguson
News Analysis-Security Now
50%
50%

Average Cyber Attack Cleanup Tops $1M, Radware Finds

Over the last year, the amount that companies pay out to clean up from a cyber attack jumped more than 50%, topping $1 million on average, according to a new industry survey from Radware.

Over the course of the year, the average amount companies spent on cleaning up from a cyber attack jumped more than 50%, topping more than $1 million for each breach or security incident that happens, according to a new industry survey released Tuesday.

Overall, enterprises spent $1.1 million on average to clean up and recover from an attack, a 52% increase from 2017 to 2018. Previously, the average stood at about $720,000 for each incident, according to Radware, which released its "Global Application and Network Security Report" on January 14. The study is based on responses from 790 IT executives in the US and other countries.

However, for businesses that actually calculate out the costs of a cyber attack themselves, the report found that clean-up costs can be even more than the estimate -- $1.67 million for each security incident.

(Source: iStock)
(Source: iStock)

Why did the cost increase more than 50% year-over-year? In an email to Security Now, Ben Zilberman, a market research manager on Radware's security team, noted three different factors: The increasing effectiveness of malicious tools, a delicate online relationship with consumers that needs to be maintained and an increase in regulation and compliance rules such as the European Union's Global Data Protection Regulation. (See GDPR Fines: Some Bark, Little Bite.)

"We believe it's a combination of various form factors including an advancement in the malevolent activity as tools are more effective and attacks are more frequent," Zilberman wrote. "Then add the fact that relations with customers are delicate and switching costs in many industries -- especially as we consume services online -- are close to zero. Third, the most incident impact is productivity loss, which constitutes additional financial damage. Then, GDPR was introduced this year. These are just few factors that tie to the high evaluation."

In terms of specific attacks, the Radware report found:

  • Malware and bots make up 76% of all the attacks reported in 2018
  • Social engineering threats, which include phishing and other fraud schemes, made up 65%
  • Distributed denial-of-service attacks made up 53%
  • Web application attacks accounted for 42%
  • Ransomware made up 38%
  • Finally, cryptomining clocked in at 20% of all incidents reported in 2018

In terms of what is motivating these attacks, over 50% respondents reported that ransom is the main motivator of cyber criminals. That's followed by political motivation and hacktivism at 31%.

However, another 31% of respondents reported that it's not clear what is motivating the attacks that target their business.

One of the ironies of the report is that despite an increase in cyber attacks over the last year (only 7% of respondents reported no cybersecurity incidents at all during the year) and the effectiveness of these attacks (78% reported either a service degradation or outage), many don't have an incident response plan or even basic protections in place.

The reasons for this vary. Zilberman noted that some businesses are not as regulated as others, so there's less motivation for owners, especially if they are not facing GDPR-style fines. At the same time, many believe that cyber criminals will not target their company if it's a smaller firm.

"Many aren't subject to regulation like financials or healthcare or feel their business health (profit) isn't sufficient to invest in Information security," Zilberman wrote. "Others are smaller and feel they are not a target (despite known stats of attacks against SMBs), some have a leadership that hasn't absorbed the importance yet and many other reasons."

Related posts:

— Scott Ferguson is the managing editor of Light Reading and the editor of Security Now. Follow him on Twitter @sferguson_LR.

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
Edge-DRsplash-10-edge-articles
I Smell a RAT! New Cybersecurity Threats for the Crypto Industry
David Trepp, Partner, IT Assurance with accounting and advisory firm BPM LLP,  7/9/2021
News
Attacks on Kaseya Servers Led to Ransomware in Less Than 2 Hours
Robert Lemos, Contributing Writer,  7/7/2021
Commentary
It's in the Game (but It Shouldn't Be)
Tal Memran, Cybersecurity Expert, CYE,  7/9/2021
Register for Dark Reading Newsletters
White Papers
Video
Cartoon
Current Issue
The State of Cybersecurity Incident Response
In this report learn how enterprises are building their incident response teams and processes, how they research potential compromises, how they respond to new breaches, and what tools and processes they use to remediate problems and improve their cyber defenses for the future.
Flash Poll
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2021-37436
PUBLISHED: 2021-07-24
Amazon Echo Dot devices through 2021-07-02 sometimes allow attackers, who have physical access to a device after a factory reset, to obtain sensitive information via a series of complex hardware and software attacks. NOTE: reportedly, there were vendor marketing statements about safely removing pers...
CVE-2021-32686
PUBLISHED: 2021-07-23
PJSIP is a free and open source multimedia communication library written in C language implementing standard based protocols such as SIP, SDP, RTP, STUN, TURN, and ICE. In PJSIP before version 2.11.1, there are a couple of issues found in the SSL socket. First, a race condition between callback and ...
CVE-2021-32783
PUBLISHED: 2021-07-23
Contour is a Kubernetes ingress controller using Envoy proxy. In Contour before version 1.17.1 a specially crafted ExternalName type Service may be used to access Envoy's admin interface, which Contour normally prevents from access outside the Envoy container. This can be used to shut down Envoy rem...
CVE-2021-3169
PUBLISHED: 2021-07-23
An issue in Jumpserver 2.6.2 and below allows attackers to create a connection token through an API which does not have access control and use it to access sensitive assets.
CVE-2020-20741
PUBLISHED: 2021-07-23
Incorrect Access Control in Beckhoff Automation GmbH & Co. KG CX9020 with firmware version CX9020_CB3011_WEC7_HPS_v602_TC31_B4016.6 allows remote attackers to bypass authentication via the "CE Remote Display Tool" as it does not close the incoming connection on the Windows CE side if t...